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1 thought on “Banks authorised to accept TDS Payment U/s. 194IA”

Hello,
I work for a Public Sector Bank.At my Branch we provide express service. So many persons NON-Customers walk in,to pay TDS through cash.This puts pressure on the limited Staff.This Hampers to give better Service to our valid customers.And Bank earns no commission on this.But we are Obliged to accept TDS cash challan as it is Government Tax Collection.
My argument is that,when One is need to pay Tax will definitely have some Bank account.For other Banking services he uses other bank and for paying TDS comes to us why?Does their Bank discourages/refuses to collect Tax.
In some cases they present their own cheque drawn on other banks.We need to present them in clearing and on realization have to pass the challan. Why not the same chequ be presented in the same bank along with Tax challan?
It looks very odd.

My view point is that A Customer may Pay Tax Challan through Cash from other bank where by he would bring his Tax bracket to the lower slab,in such cases Government would stand to loose some tax collection because cash used to pay TDS is not accounted for income,but Tax paid can be reduced from the Taxable amount.
Please clarify Banks stand on this.whether we can advice the customer to pay the challan through their accounts only.